Jeff Bingaman United States Senator from New Mexico

WASHINGTON – U.S. Senator Jeff Bingaman today applauded the enactment of a new law that improves grants to New Mexico college students and strengthens New Mexico's colleges and universities.

"This new law will help put a college education within reach of more New Mexicans.  It's the most important higher education measure Congress has approved in years, and it will have a dramatic impact on students in our state," Bingaman said.

The new law, which also contains adjustments to the newly enacted health insurance reform measure, requires the U.S. Department of Education to make college loans directly to students, rather than subsidizing private lenders.  Students will notice little or no change in the student loan system.  Over the next decade, this action will save $61 billion.

These savings are given back to students in the form of increased Pell Grants for low-income students.  Over the 10 years, New Mexico students stand to gain more than $240 million in Pell aid because of this new law.

The new law will also provide an estimated $95 million over the next decade for New Mexico's Hispanic-Serving Institutions and Tribal Colleges.  In supporting disadvantaged college students through this bill, we help them to achieve the American dream.

In addition, the law will limit the percentage of income that any borrower must pay in student loans, and it provides for full forgiveness of the balance of federal student loans after 20 years.

Bingaman said the new law will protect jobs in New Mexico and ensure that our students receive the high-quality servicing on their loans that they have come to expect.

"This new law will help strengthen our state's economy by ensuring that we have the smartest, most competitive workforce in the world," Bingaman said.